The Government announced in March 2020 that they would defer Self-Assessment (SA) Payments on Account (POA) that were due to be paid by 31st July 2020 to 31st January 2021. This measure enabled the easement of cash-flow pressures on those SA taxpayers who were due to pay their POA by 31st July in a difficult period in the COVID-19 pandemic.
There are established procedures in place should any taxpayer wish to reduce their POA for the coming tax year which are due on 31st January 2021 and 31st July 2021. Guidance on how a taxpayer can reduce their POA can be found at: www.gov.uk/government/publications/self-assessment-claim-to-reduce-payments-on-account-sa303.
SA taxpayers can also apply online for a Time to Pay arrangement (TTP). This offers additional support to help spread the cost of a taxpayer’s tax bill into monthly payments. Guidance on TTP arrangements can be found at: